Livingstone is pleased to announce the acquisition of Advantage Rent A Car (“Advantage”) by Hertz Global Holdings Inc. (“Hertz”), after the rental car company’s bid won out over another offer for Advantage in the bankruptcy auction managed by Livingstone. Livingstone was appointed by the Official Committee of Unsecured Creditors.
Advantage Rent A Car is the largest independent rental car agent, and one of the leading internet and discount-driven vehicle rental companies, in the United States. Advantage, suffering along with the rest of the sector from the weak economy and tight credit, filed for Chapter 11 bankruptcy protection in December.
As a result of a successful marketing process that targeted domestic and international strategic buyers, and financial buyers focused on distressed investments, the unsecured creditors will recover more than double the amount available under the original stalking horse bid.
K&L Gates LLP Senior Partner, and lead counsel to the Committee, Harley Goldstein, commented “the Livingstone team provided immediate value to the §363 sales process and drove a competitive environment that resulted in a significantly better outcome for the creditors.”
Hertz will initially operate 20 Advantage locations in key U.S. leisure travel markets. Mark P. Frissora, Hertz’s Chairman and Chief Executive Officer, said, “We’re pleased to have secured the purchase of Advantage Rent A Car, a popular brand for price-oriented customers at key U.S. leisure travel destinations. Underscoring our commitment to serve all segments of the leisure car rental market, the 20 Advantage locations, combined with our 6 Simply Wheelz locations and the Hertz brand nationwide, enables us to serve the wide range of service and price-oriented car rental customers in the United States.”
Stephen Miles, Partner at Livingstone Chicago, added: “This is an excellent outcome for Advantage and its creditors, as well as a significant example of Livingstone’s growing international expertise in corporate restructurings and our deep knowledge of the sector.”
In June 2008, Livingstone also led the buyout of an independent online and offline broker specializing in vehicle rentals.
